This week I'll be at Digital Hollywood Fall in LA, the first big industry gathering I've attended since the economic crisis hit. I've been trying to keep my finger on the pulse of what the crisis means for the broadband video industry. Get-togethers like this, with lots of time for informal, off-the-record chats are great for getting a sense of what colleagues think is on the industry's horizon.

Here are 3 interrelated areas I'm most interested in learning about:

Financing

With the credit markets frozen and stock markets tumbling, the availability of financing is topic number one. This is especially relevant for the industry's many earlier stage companies, reliant on private financing from venture capitalists, angels and other private equity investors.

In any downturn, the first expense to get cut is people. Headcount reductions are often done quietly, with word later leaking out to the public. Last week brought news of trimming at three indie video providers, Break (11 people), ManiaTV (20) and Heavy (12). More are sure to follow at other companies. As I've written before, the indies are among the most vulnerable in this environment, likely leading many to find bigger partners for both distribution and monetization. But whether layoffs will hit other industry sectors such as platforms, ad networks, CDNs, mobile video and big media is still to be determined by...

Customer spending

Central to the question of how deeply the financial crisis spirals is the interdependence of customer spending at all levels of the economy. Thinking you're safe because you're a B2B company is meaningless if your customers are B2C companies cutting back due to reductions in consumer spending. When consumers tighten their belts that leads to advertisers reducing their spending which leads to media companies scaling back which leads to technology vendors feeling the impact. The reality is we're all in this together.

In fact, the more I read about the economy's fragile condition, the clearer it is that the primary way out is rebuilding confidence and renewed spending at all levels. If a spending paralysis occurs, it could be long road ahead. While there's no reason to believe that consumers are going to slow their consumption of broadband media, the ability to monetize it and innovate around it would be dampened if spending hits a wall.

These are among the topics I'll be looking to discuss at Digital Hollywood this week. If you're attending, drop me a note so we can try to meet up and/or come by the session I'll be moderating on Wednesday at 12:30pm.

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